Alsalam Aircraft Company has won a $380m (over 1.4 bn Riyal) five-year contract to provide maintenance support to the Royal Saudi Air Force’s (RSAF) fleet of F-15 fighter jets.
The Riyadh-based aviation products company, which is 50% owned by Boeing, said that the Technical Support Program (TSP) award was its biggest single contract ever, according to information posted on the Tadawul site.
Saudi Arabian Airlines holds 25% of Alsalam; other investors include Saudi Advanced Industries Company (10%), Gulf Investment Company (10%) and the National Industrialization Company (5%).
The company was set up to provide Saudi Arabia with self-sufficiency in the aircraft maintenance field, and offers services to both commercial and military aircraft.
Other than maintenance support to the F-15 fleet, Alsalam is also the prime contractor on the RSAF’s attack helicopter fleet.
The firm’s pipeline of work is expected to grow considerably in the next 20 years or so, due to heavy Saudi investment in new military aircraft.
The kingdom could buy as much as $60bn worth of arms from the US in deals that are currently being considered by Congress.
Consultancy AlixPartners believes that the Middle East’s aircraft maintenance, repair and overhaul (MRO) sector is set to double to $4.4bn by 2019.
Source: Arabian Business